Private Client

How South Dakota seemingly overnight has become a trust jurisdiction to be reckoned with

A close look at: “The Taxation of Trusts: A Review” published by HMRC in November 2018.

2019 and beyond: Pre-Brexit Exit

爱伤害了——可能帮助一个爱one die, lose you your inheritance?

Keeping up with the Taxes: Investing Efficiently in Changing Times

While the UK’s impending exit from the European Union may have dampened demand in UK property, particularly in the City, the same is not uniformly true elsewhere, and this year is nevertheless set to be strong if European investors are anything to go by.

Complex offshore structures – traps and pitfalls: a practical guide

There has been a growing trend over recent years for the development of bespoke and complex holding structures to accommodate the needs and sensitivities of ultra-high net worth individuals. Often, the clients originate from civil law jurisdictions and as a consequence are unfamiliar with trusts and the fiduciary relationship created. There is (understandably) suspicion.

Settlement of assets into trusts could shelter individuals from increases of Italian inheritance and gift tax rates

Compared to other countries (such as UK, US or France) Italian inheritance and gift tax currently applies at very favorable rates. Proposals to increase the burden of inheritance and gift tax have been discussed in Parliament in the past years and it is possible that an increase might be eventually approved.

2019 – a year for giving?

The dawn of 2019 will have been seen by many as a chance for self-improvement – to take up a new hobby, to learn a musical instrument, to finally use that gym membership. For some, 2019 is a chance to continue the generosity felt during the festive period and to consider donating to charity.

Insolvent Trusts

It is trite law that a trust has no legal personality - it is the trustees who are personally liable for the debts (and other liabilities) of a trust, subject to a right of indemnity from the trust fund where such liabilities are properly incurred.

Litigation and Privilege: when is there really a dispute?

The cloak of privilege can be an invaluable tool in any legal matter providing the security of knowing that communications or advice will not at some later date become disclosable to an adverse party.

Trust Law Amendments

信托(7)号修正案(球衣)法2018 (the Amendment Law), which came into force on 8 June 2018, refines and further enhances Jersey's trusts legislation, the Trusts (Jersey) Law 1984 (the Law). Here, Carey Olsen senior associate Nichola Aldridge summarises the key provisions of the Amendment Law.

Inheritance Tax Review

The Office of Tax Simplification ("OTS") published a consultation on inheritance tax ("IHT") in April 2018 and we are expecting their report this Autumn. What areas of IHT does the consultation look at and can practitioners expect wide-ranging reforms as a result?

Domicile - More Than Just The Place You Call Home

Following the changes to the UK deemed domicile provisions, which took effect from 6 April 2017, it is becoming increasingly important for individuals to make sure they are comfortable with the concept of domicile, that they understand how it is determined and, importantly, how domicile impacts their personal UK tax position.

Re HH

The Court of Protection in Re HH [2018] has returned to the vexed question of the court’s power to retrospectively approve payments made by attorneys who have exceeded the very limited powers of gifting prescribed by the Mental Capacity Act 2005 (MCA 2005).

Hastings Bass in the Channel Islands

The rule (or principle, as it is often referred to) is taken from the decision in Re Hastings Bass in the English Court of Appeal in 1975.

Requirement To Correct Tax Due On Offshore Assets

As HMRC continue their mission to stamp out offshore tax evasion new legislation could result in many inadvertent casualties. The Requirement to Correct (RTC) legislation imposes significant fixed penalties and sanctions if underpaid tax is discovered as being owed in relation to offshore assets.

I can see clearly now…

In recent years, there has been a positive deluge of reporting initiatives affecting UK individuals, entities and structures with a UK connection. Some of these have come from the USA (so-called “FATCA”), some from the OECD (the Common Reporting Standard), others from the EU (as a result of the 4th Anti Money Laundering Directive) and others are simply ground-breaking initiatives by the UK government.

The Order of The Hammer

Baron Trevor at the age of 64 delivered his maiden speech in the House of Lords. He had waited 43 years to do so on the principle of speaking only when he had something to say. Though with less compulsion than Baron Trevor, I did feel the urge to write this reflective article as I enjoyed the wonderful view of the Bay of Panama with pelicans gliding across the skies as a radiant sunset was giving way to dusk. Many thoughts came to mind.

Tax Reform - Estate and Gift Tax Update

Following President Trump’s signing of the Federal tax bill on 22 December 2017, the effective lifetime Estate and Gift Tax exemption for US citizens & residents (domiciled) has increased from $5.49m in 2017 to approximately $11.2m per individual (approaching $22.4m for US citizen or US domiciled married couples) with effect from 1 January 2018. The inflation adjustment factor has not yet been finalised.

Are You An Owner Of A US Disregarded Entity? If So, New Reporting Potentially Now Applies

A reminder from Frank Hirth that the IRS now require the annual filing of Form 5472 in respect of disregarded U.S. entities (such as US LLC's) which are wholly-owned by foreign persons.